Iron’s surge to $70 draws out sceptics as prices reverse

July 21, 2017

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Iron-ore’s strong start to the second half and surge above $70 a metric ton will probably fade through the year-end as demand from top buyer China slows and global mine supplies remain robust, according to Sucden Financial and Bank Julius Baer & Co.

“Any significant uptick in seaborne cargoes toward the tail-end of the year, and a fading demand outlook, will likely see iron ore prices trade lower as we view this recent rally as transitory,” Kash Kamal, an analyst at Sucden Financial, said in an email. Prices will average about $60 this half, he said.

Category: General